By Paul A. Harris
Portland, Ore., June 2 – Wesco Distribution, Inc. priced a $350 million issue of eight-year senior notes (B1/BB-) at par to yield 5 3/8% on Thursday, according to a syndicate source.
The yield printed at the tight ends of official yield talk and early guidance, both of which were in the 5˝% area.
Left bookrunner Goldman Sachs & Co. will bill and deliver for the quick-to-market deal.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were joint bookrunners.
Proceeds will be used to repay all of Wesco’s outstanding convertible senior debentures due 2029. Prior to that use, proceeds will be used to temporarily repay all amounts outstanding under the U.S. subfacility of the company’s revolver and to reduce a portion of the balance of the securitization facility.
Wesco is a Valencia, Calif.-based provider of comprehensive supply chain management services to the aerospace industry.
| Issuer: | Wesco Distribution, Inc.
|
| Amount: | $350 million
|
| Maturity: | June 15, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co. (bill and deliver)
|
| Joint bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | BB&T, Fifth Third, HSBC, Huntington, Citizens, U.S. Bancorp Investments Inc.
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Call: | Make-whole call at Treasuries plus 50 bps until June 15, 2019, then callable at 104.031
|
| Trade date: | June 2
|
| Settlement date: | June 15
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 5˝% area
|
| Marketing: | Quick to market
|
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